Abstract

Nigeria has indicated her intention to adopt International Financial Reporting Standards (IFRS) as from 2012. This is taking place against the
backdrop of the argument suggesting that IFRS are irrelevant to developing countries. And that those developing countries adopting it are doing
so because IFRS is a product with “network effects.” This contradiction and the question of the relevance of IFRS to Nigeria are evaluated and
explored in this study, using the perception of users and preparers of accounting information and drawing from the economic theory of network.
The results of the descriptive study showed that IFRS adoption in Nigeria will have the potential to be beneficial to a wide range of stakeholders
albeit the challenges posed by the ethical environment prevailing in the country. The study recommends, amongst others that Nigeria’s
adoption of IFRS should be supported as a matter of national urgency to enable full attainment of the country’s economic potential, the Nigerian
Accounting Standards Board (NASB) should expedite approvals and processes required for formal adoption of IFRS as national accounting
standard in Nigeria, the education, sensitization, and communication to stakeholders of issues associated with IFRS should commence in
earnest, a rigorous IFRS capacity building program should be embarked upon by all regulatory bodies, firms and training institutions in order to
provide the needed manpower for IFRS implementation and finally that this article be updated by further studies to take account of the areas of
differences in perception between preparers and users so as to provide further useful information on the subject.